Which of the following statements about transfer postings is correct?

Transfer postings are transactions that change the status or location of materials within the inventory management system. They are used to reflect changes in the stock type or to move materials between different storage locations or plants. When a transfer posting occurs, it generates both a material document and an accounting document to record these changes.

The material document provides the details of the physical flow of goods, capturing how much stock was moved, from where, and to where. Simultaneously, the accounting document ensures that the financial impact of this change in inventory is accurately reflected in the company's financial statements, maintaining the integrity of inventory valuation and cost accounting.

Therefore, the correct perspective is that transfer postings create both a material document and an accounting document. This dual documentation is essential for proper record-keeping and ensures compliance with accounting standards and inventory management practices.